Question
A Ltd commenced its operation on 1 January 2019 and the unadjusted balance sheet is as follows: A Ltd Balance Sheet (1 January 2019) Current
A Ltd commenced its operation on 1 January 2019 and the unadjusted balance sheet is as follows:
A Ltd Balance Sheet (1 January 2019)
Current Assets
Cash
10
Inventory
25
Non-current Assets
Plant and Equipment
90
Land
75
Total Assets
200
Current Liabilities
Bank Overdraft
10
Non-current Liabilities
Bank Loan
10
Total Liabilities
20
Net Assets
180
Represented by:
Shareholders' funds
Paid-up Capital
180
A Ltd Balance Sheet (31 December 2019)
Current Assets
Cash
100
Accounts Receivable
20
Inventory
35
Non-current Assets
Plant and Equipment
90
Accumulated Depreciation
-9
Land
75
Total Assets
311
Current Liabilities
Bank Overdraft
10
Accounts Payable
30
Tax Payable
26
Dividends Payable
15
Non-current Liabilities
Bank Loan
10
Total Liabilities
91
Net Assets
220
Represented by:
Shareholders' funds
Paid-up Capital
180
Retained Earnings
40
A Ltd Income Statement (31 December 2019)
Sales Revenue
200
COGS
100
Opening Inventory
Purchases
Closing Inventory
Gross Profit
100
Other Expenses
Administrative Expenses
9
Interest Expenses
1
Depreciation
9
Profit Before Tax
81
Tax
26
Profit after Tax
55
Opening Retained Earnings
0
Dividend Proposed
15
Closing Retained Earnings
40
Additional Information is presented below:
The Administrative Expenses and Interest Expenses were incurred uniformly throughout the year.
The tax liability did not arise until year end.
The dividends were declared at the end of year.
The inventory on hand at year end was acquired in the Q3 of the year.
Purchases of inventory occurred uniformly throughout the Q1, Q2 and Q3 of the year.
Sales occurred uniformly throughout the year.
Price Level Indices
1-Jan-19
30
31-Dec-19
45
Average for the year
32.5
Average for Q1
31
Average for Q2
32
Average for Q3
33
Average for Q4
34
Please provide the Statement of Movement from Net Monetary Assets in 2019, Reconciliation of Opening and Closing Net Monetary Assets, Price-level Adjusted A Ltd Income Statement (31 December 2019), and Price-level Adjusted A Ltd Balance Sheet (31 December 2019
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Quality Control Procedure For Statutory Financial Audit An Empirical Study
Authors: Siddhartha Sankar Saha, Mitrendu Narayan Roy
1st Edition
1787142272, 9781787142275
